With the current global economy rapidly growing, demands for high-rise construction also continue to rise at a dizzying rate. That is why more and more construction management professionals are needed, along with outsourcing providers who can supply the much-needed workforce.
Outsourcing and offshoring engineering and construction services has been a common practice for several years now, whether in the EPC sector (engineering, procurement, and construction) or the AEC sector (architectural, engineering, and construction). Many firms believe that outsourcing helps in bidding for larger jobs and projects, allowing them to focus on strategies to manage and expand their resources.
Construction and engineering projects usually comprise several sub-contracted entities, with project managers overseeing the success or outcome of the work. Because of the multi-faceted nature of the everyday operations, companies are now looking into outsourcing to fill in the necessary positions in areas like back office functions, IT, accounting, 3D modeling, and drafting services.
Depending on the project and the standards required by the local governments, some of the roles that are frequently off-shored are:
While outsourcing is commonplace nowadays, there are still those who are hesitant in justifying why outsourcing is just as good — if not better — than hiring an internal construction or engineering team.
The most common and probably the biggest benefit of outsourcing engineering services is the reduced labor costs.
According to an article in Industry Week, companies typically achieve 30% to 50% of savings on labor costs. The revenue that is saved through outsourcing can be appropriated into other investments to improve core business functions. The increased flexibility you gain from outsourcing enables your company to take up more projects and expand your customer base.
2. Access to trained engineers and advanced technology
When outsourcing engineering services, you can be assured that the outsourcing agency you work with will provide you with a skilled and trained team of engineers who have ample work experiences and can work advanced engineering tools and technologies. Some firms also let their clients tap into the potential of using the latest software and technology so you don’t have to invest in them.
With construction contractors, you will most likely be working with a group of professionals with experience working on construction projects within several different industries such as restaurants, municipalities, office spaces, and apartment buildings. It is also highly possible that they have completed projects like yours once or twice before. The versatility and flexibility you gain from hiring contractors with experiences from different industries gives you and your company an added edge.
When outsourcing engineering services, you can be assured that your projects are delivered at a faster turnaround time. With a team of trained and skilled engineers ready, outsourced engineering service providers have appropriate strategies in place to complete projects quickly.
With a set of dedicated engineers hired specifically for your company, you can be assured that all their resources will be focused on completing your projects. With the burden of overseeing your projects lifted from your shoulders and handed to your service provider, you can instead focus on your core business activities.
If you outsource a construction contractor or an engineering services provider, there is a possibility that you can leverage your outsourced partner's established network and not just their own set of people. This can include architects, expediters, and general contractors who can assist you throughout the development process. In turn, these professionals would also compete for your business, and give you the highest quality for the best price.
Aside from the talent, you can also tap into the local knowledge of your outsourced engineering team especially if they are offshored in a foreign country. Since they speak the local language, you gain a helping hand in dealing with local regulations and standards.
You can be assured that the engineers and construction contractors you work with apply their best practices as they already know the ins and outs of the construction industry, especially in their locality. Your projects can also be tailored to suit the local geographies and help you gain an advantage in competing in the local market.
When you work with an internal construction team or project manager, your focus may become too narrow since you are essentially one entity adhering to the same culture. Working with an outsourced contractor gives you a different perspective which you can use to your advantage in optimizing your project’s efficiency.
With a fresh set of eyes, you can do your projects in a way that you may not have thought of before. Also, when working with trained construction or engineering professionals, you can receive timely updates on every project detail from start to finish.
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